EU Issues New Rules for Funds Using “ESG” or “Sustainability” Names to Address Greenwashing Risk
Mark Segal • May 14, 2024
"EU markets regulator the European Securities and Markets Authority (ESMA) announced today the release of its finalized guidelines for the use of ESG and sustainability-related terms in investment fund names."
"ESMA’s finalized guidelines follow the launch by the regulator of a consultation on proposed guidance in November 2022. In the initial proposal, ESMA introduced a threshold of the minimum proportion of investments required to support an ESG-related fund name, including an 80% threshold for the use of ESG-related words, and a 50% threshold for the use of “sustainable” or any sustainability-related term."
